27/05/2026

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WEDNESDAY | MAY 27, 2026

Tomei cautiously optimistic about outlook for second half

KUALA LUMPUR: Malaysia’s total trade with its major trading partners reached a record high of RM1.127 trillion from January to April 2026, surpassing the RM1 trillion mark within the first four months of the year. In a Facebook post, Deputy Investment, Trade and Industry Minister Sim Tze Tzin said trade, exports, imports and the trade surplus all recorded their highest ever levels for the January to April period. Exports reached RM609.31 billion, while imports totalled RM517.40 billion during the period. “The trade surplus doubled year-on-year to RM91.92 billion,” he said. He added that, from day one in office, Prime Minister Datuk Seri Anwar Ibrahim has worked tirelessly to attract both foreign and domestic investments. Malaysia recorded historic investment achievements for three straight years under Anwar’s leadership, with approved invest ments reaching RM329.5 billion in 2023, RM384.4 billion in 2024 and RM426.7 billion in 2025. In total, Malaysia secured RM1.14 trillion in approved invest ments under his watch. Sim said the inflow of investments has led to the establishment of more factories, higher production output and stronger export performance, which in turn has generated greater wealth for the country. He said this reflected the prime minister’s hard work. Sim also commended the Ministry of Investment, Trade and Industry, Malaysian Investment Development Authority, Malaysia External Trade Development Corporation and other related agencies for their contributions.– Bernama RM1.127 trillion in January-April Sim: Trade with major partners hits record struction sector, as reflected by a negative 5.4% net balance versus 12% previously. Concurrently, subdued sentiment was recorded in the wholesale and retail trade sector, with a negative 1% net balance against 6.9% previously. About 33% of businesses expect Q2 2026 gross revenue to rise, 43% unchanged and 24% expects a decline, resulting in a net balance of 9% for the reference quarter. Meanwhile, 14.7% of businesses project employment to rise, 75.8% expect to maintain their workforce and 9.5% expect a fall, contributing a 5.3% net balance in Q2 2026. – Bernama

o Jeweller sees investment demand surge but warns of slower third and fourth quarters post festive season

Ű BY HAYATUN RAZAK sunbiz@thesundaily.com

“If we sell 10 kilos, we buy back 10 kilos the same day to maintain our inventory levels at prevailing market prices, so we do not hedge our exposure.” Ng acknowledged average-cost accounting can create timing mis matches, with margins improving when gold prices rise as older, lower cost inventory is sold at higher prices, but coming under pressure when prices fall and higher-cost stock is sold at lower market prices. “Over time, these fluctuations tend to balance out as inventory costs and selling prices adjust to market conditions,” he said. Margins remain acceptable at current levels, supported by the group’s disciplined pricing and inventory management, he added. Ng said Tomei has observed a marked shift in consumer behaviour in recent years, with demand for gold investment products including wafers, coins and kilogramme bars rising significantly as price aware ness increased and geopolitical uncertainty drove safe-haven buying. “More customers are investing into gold. There is a surge in gold investment products. But when the gold price goes up, the demand for jewellery has come down because it’s not so affordable anymore,” he said. In response, Tomei is investing in product design to produce lighter, more intricate pieces that maintain visual appeal at lower gold weight and hence lower price points. Tomei soft-launched its digital gold platform GoldNOW ahead of Chinese New Year, with the take-up rate described as encouraging.

KUALA LUMPUR: Tomei Conso lidated Bhd is cautiously optimistic on its second-half outlook amid gold price volatility and softer near-term sales due to end of festive demand. Group managing director Datuk Ng Yih Pyng said gold prices, which corrected from a peak of about US$5,580 per troy ounce to around US$4,100-US$4,200, have since stabilised at about US$4,500 (RM17,850), and are expected to trade within a range of about US$300 on either side in the near term. “The gold price should be within a range. At this moment, it is around US$4,500, plus or minus. I don’t expect the price to be too volatile until there is greater certainty in the market,” he told a press conference after the group’s annual general meeting yesterday. Ng noted that the peak selling periods for Chinese New Year and Hari Raya have already passed, with the latter falling earlier this year compared with last year, resulting in a shorter festive-driven demand cycle. “As such, we anticipate that the second and third quarters will be relatively slower, as there are fewer festive occasions to support retail demand, and spending may moderate in the absence of seasonal buying,” he said. Ng said Tomei remains fully exposed to gold price movements as it does not hedge its inventory, instead relying on a mark-to-market approach that involves daily stock replenishment at prevailing prices. KUALA LUMPUR: Businesses anti cipate a softer second quarter 2026 (Q2 2026) with the confidence indicator easing to negative 1.8% from 4% in the previous quarter, ac cording to the Statistics Department Malaysia (DoSM). In a statement yesterday, Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin said the construction, wholesale and retail trade, and industry sectors are expecting less favourable business performance in the quarter reviewed, indicating that businesses remain cautious amid a challenging business environment and global uncertainties. “The services sector continues to

Raja Aman (right) and Ng at Tomei Consolidated ’s 21st AGM yesterday. – BERNAMAPIC

However, Ng said the platform’s contribution to overall revenue remained below 1% and was “negligible” in absolute terms, even as it grows. “Just like our e-business when we started, it was small. It’s still not big today, but it’s growing at a very healthy rate,” he said. On the retail network, Ng said Tomei is in active discussions with several malls but will pace any new openings carefully given the cost of setting up outlets and the softer consumption environment. The company is also reviewing under performing stores for potential closure. “We may open a few new outlets while closing underperforming ones, but on a net basis, the increase will likely be limited to no more than one or two stores,” he added. Chairman Raja Tan Sri Aman Raja Ahmad cited the shift by central banks away from US dollar reserves and into gold as a key catalyst for the earlier price surge, and the correction that followed as that

repositioning wound down. He also flagged the potential for further pressure from rising US interest rates, which could draw capital back into dollar-denominated bonds and away from gold. “When interest rates of US dollar bonds go up, people move from gold or even developing currencies into US dollars. That’s how the world market works,” he said. Raja Aman described the current period as a defensive phase for the business, where the priority is to safeguard financial health, maintain liquidity and exercise caution in expansion and new investments. “If you are familiar with football, this is a defending time, not scoring time. We have to make sure our debt ratio is good, our cash flow is strong. Any new business will be evaluated thoroughly,” he said. Raja Aman added, however, that the environment also presented opportunities for cash-rich operators, and that newer business lines such as pawnbroking offered some diver sification. A pessimitic lull is over Malacca with the confidence indicator at negative 9.1%, Pahang -7.1%, Penang -5.2%, Perlis -7.1%, Sabah -7.6%, Sarawak -5.9%, Kuala Lumpur -2.8%, Labuan -9.5% and Putrajaya -2.3%. Business sentiment between April and September 2026 remains optimistic with a net balance metric easing to 7.9% from 10.8% previously while the industry sector has a net balance of 13%, up from 6.2% previously. Services sector business sentiment remains positive, with a 7.5% net balance against 20.6% from January to June 2026. Mohd Uzir expects a decline in business conditions in the con

Businesses expect softer second quarter: DoSM maintain a positive outlook for Q2 2026, benefiting from continued government support measures that preserve consumers’ purchasing power and facilitate business activities, particularly in domestic-driven service sectors,” he said in conjunction with DoSM’s release of the Business Tendency Statistics for Q2 2026. sector projected a weaker perfor mance, with a confidence indicator of negative 3.7% against a positive 3.3% in Q1 2026. “The services sector expects business performance to remain optimistic, with a confidence indicator of 6.2% against 6.6% in the previous quarter,” he said. Mohd Uzir said mixed business

Mohd Uzir said the construction sector turned pessimistic, with the confidence indicator registering negative 9.5% in Q2 2026 against 1.4% in the previous quarter. The confidence indicator for the wholesale and retail trade sector declined to negative 7.5% in the quarter reviewed while the industry

expectations were observed across states, indicating varying economic prospects. Johor recorded a confidence indicator of 1.2%, Kedah 3.2%, Kelantan 3.8%, Negeri Sembilan 1.9%, Perak 0.9%, Selangor 0.2% and Terengganu 5.5%.